Emira Property Fund Ltd. · JSE:EMI

Emira Property Fund — Corporate Update (December 2008)

94 slides from Emira Property Fund's corporate update, Dec 4, 2008

  1. Slide 1: Investor Presentations and Site Visit

    Investor Presentations and Site Visit 04 December 2008

  2. Slide 2: Presentations

    PRESENTATIONS Approved Projects and Investments - Completed Quagga Shopping Centre TIS Lake Buena Vista Approved Projects - In Progress Granada Square Yet to be Approved Projects - In Planning Brooklyn Office Park Podium Hurlingham Office Park Rosebank (2 Sturdee and 12 Baker) FNB Heerengracht Updat

  3. Slide 3: Introduction

    INTRODUCTION Emira has focussed on internal opportunities in past 24 months Completed capex projects in FY08 amounted to R230m at 11.4% - mainly comprised retail extensions, office refurbishments i.e. either accommodating new tenants, or ensuring that offices could capitalise on higher rentals 3 x c

  4. Slide 4: Introduction

    INTRODUCTION Projects at very well located properties All of these projects have resulted/will result in benefits to the fund: Higher rentals Improved sustainability of income from property Accommodate quality tenants Long-term leases Funding has been through various sources including asset disposal

  5. Slide 5: Introduction

    INTRODUCTION In past six months funding of projects has become more difficult Tenant demand has dried up towards the end of 2008 However projects take time to plan and therefore process has continued Emira’s ability to issue equity is limited (and dilutionary), but the fund is undergeared and the sw

  6. Slide 6: Approved Projects & Investments - Completed

    APPROVED PROJECTS & INVESTMENTS - Completed

  7. Slide 7: Property: Quagga Centre (Pre-Extensions)

    PROPERTY: QUAGGA CENTRE (PRE-EXTENSIONS) Located in Pretoria West, along Church Street to the west of the CBD Developed in 1989 with a size of 23,626m² - community centre Major upgrade in 1998 - floors, ceilings and mall finishes Acquired in 2003 by Emira at a cost of R59m In December 2006 valued at

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  9. Slide 9: Property: Quagga Centre

    PROPERTY: QUAGGA CENTRE

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  11. Slide 11: Property: Quagga Centre

    PROPERTY: QUAGGA CENTRE Refurbishment started May 2007 and completed June 2008 Book value (prior to completion) at 30 June 2008: R207.4m Size: 29,748m2 Average net rentals: R66.48m² National tenants 76% vs 52% Centre turnover up 20% Foot count: 4.7m p.a. Major tenants: Shoprite Checkers (5,715m²) Pi

  12. Slide 12: Financials: Quagga Centre

    FINANCIALS: QUAGGA CENTRE The refurbishment was divided into two phases: Phase 1 Main extension to the building Phase 2 Refurbishment and internal alteration Capital Requirement and Returns Motivated Achieved CAPEX CAPEX Phase 1 R 78,03m Phase 1&2 R90,59m Phase 2 R 14,86m Total R92,89m Savings R2,30

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  16. Slide 16: Property: TIS, Corporate Park North

    PROPERTY: TIS, CORPORATE PARK NORTH Acquisition date: 19th November 2008 Located just off Old Pretoria Road with visibility to N1 highway Secure, sub-divisible industrial property measuring 15,183m² Tenant: 43% let to Technology Integrated Solutions (subsidiary of Altron) for 5 years The remaining s

  17. Slide 17: Location: TIS, Corporate Park North

    LOCATION: TIS, CORPORATE PARK NORTH

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  19. Slide 19: Photograph: TIS, Corporate Park North

    PHOTOGRAPH: TIS, CORPORATE PARK NORTH

  20. Slide 20: Financials: TIS, Corporate Park North

    FINANCIALS: TIS, CORPORATE PARK NORTH Acquisition date: 19th November 2008 Purchase price: R90,200,000 (R5,941m²) Yield: 8.2%

  21. Slide 21: Property: Lake Buena Vista (Pre-Redevelopment)

    PROPERTY: LAKE BUENA VISTA (PRE-REDEVELOPMENT) 5 Storey office building Located adjacent to the Centurion Shopping Centre, overlooking the Centurion Lake Value at 30 June 2008: R49.7m Size: 5,735m² Parking ratio: 2 bays / 100 m² Tenant: vacant Net rental: R50m²

  22. Slide 22: Project: Lake Buena Vista

    PROJECT: LAKE BUENA VISTA Conversion of ground floor to covered parking Replacement of the GLA on ground floor lost by converting excess balconies to office space Reconfiguration of the foyer area to be more efficient Refurbishment of the ablution facilities New air-conditioning plant External cladd

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  24. Slide 24: Before & After Redevelopment: Lake Buena Vista

    BEFORE & AFTER REDEVELOPMENT: LAKE BUENA VISTA

  25. Slide 25: Floor Plan: Lake Buena Vista

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  26. Slide 26: Property: Lake Buena Vista (Post Redevelopment)

    PROPERTY: LAKE BUENA VISTA (POST REDEVELOPMENT) Size: 6,894m² Extra bulk created: 1,159m² Parking ratio: 3 bays / 100m² Tenant: FirstRand STI Administration, t/a Outsurance 5 Year lease from August 2008 Net rental: R90m²

  27. Slide 27: Financials: Lake Buena Vista

    FINANCIALS: LAKE BUENA VISTA July 2008 Completion R33.3m Capital spend (R4,830m²) R4.0m Incremental net income 12.0% Incremental yield

  28. Slide 28: Approved Projects – In Progress

    APPROVED PROJECTS – In Progress

  29. Slide 29: Property: Granada Square (Pre-Refurb)

    PROPERTY: GRANADA SQUARE (PRE-REFURB) Located in upper-LSM market of Umhlanga Rocks Value at 30 June 2008: R45.0m (R7,700m²) Size: 5,818m2 Number of tenants: 25 retail / 30 offices Average net rentals: R67.61m2 Major tenants: ABSA (320m²) Europa (250m²) Creative Beads (400m²)

  30. Slide 30: Granada Centre

    GRANADA CENTRE UMHALANGA, DURBAN

  31. Slide 31: Granada Centre

    GRANADA CENTRE UMHALANGA, DURBAN

  32. Slide 32: Granada Centre

    GRANADA CENTRE UMHALANGA, DURBAN

  33. Slide 33: Property: Granada Square (Post Refurb)

    PROPERTY: GRANADA SQUARE (POST REFURB) Projected value at completion: R104,7m (R13,400m²) Size: ±7,800m2 Number of tenants: 18 retail / 40 offices Average net rentals: R104,40m2 Major tenants: ABSA (400m²) – new 5 year lease Europa (250m²) - new 3 year lease Creative Beads (340m²) - new 3 year lease

  34. Slide 34: Financials: Granada Square

    FINANCIALS: GRANADA SQUARE Capex Approved R44.5m Income Approved R4.56m Return Approved 10.3%

  35. Slide 35: Granada Centre

    GRANADA CENTRE UMHALANGA, DURBAN

  36. Slide 36: Granada Centre

    GRANADA CENTRE UMHALANGA, DURBAN

  37. Slide 37: Granada Centre

    GRANADA CENTRE UMHALANGA, DURBAN

  38. Slide 38: Granada Centre

    GRANADA CENTRE UMHALANGA, DURBAN

  39. Slide 39: Yet to Be Approved Projects – In Planning

    YET TO BE APPROVED PROJECTS – In Planning

  40. Slide 40: Property: Brooklyn Office Park (Pre-Rebuild)

    PROPERTY: BROOKLYN OFFICE PARK (PRE-REBUILD) B-grade office park located in high profile commercial market, south east of Pretoria CBD Value at 30 June 2008: R33.0m (R6,152m²) Size: 5,364m2 Number of tenants: 28 Average net rentals: R67.13m² Major tenants: Fast Communications (600m²) Moores Rowland

  41. Slide 41: Financials: Brooklyn Office Park (Post Rebuild)

    FINANCIALS: BROOKLYN OFFICE PARK (POST REBUILD) Planning potential rebuilding New GLA 13,000m2 (in cost R2,500m²) JV of entire precinct: 20,000m2 Estimated cost R345m – total JV cost (excl land) Expected yield 11% Projected gross market rent R160m2 (2010/2011)

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  45. Slide 45: Computer Generated Perspective

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  46. Slide 46: Property: Podium House (Pre-Rebuild)

    PROPERTY: PODIUM HOUSE (PRE-REBUILD) B-grade office park located in upper-LSM market of Menlyn / Lynnwood Value at 30 June 2008: R22.4m (R4,600m²) Size: 4,832m2 Number of tenants: 28 Average net rentals: R48.52m² Major tenants: Discovery Health (540m²) Nedbank Corporate (360m²)

  47. Slide 47: Potential: Podium House

    POTENTIAL: PODIUM HOUSE Extremely well located Under performing Redevelop site to 13,000m2 – (in cost R1,700m²) Capital cost R260m (excl land) Expected yield 10.8% Projected gross market rent R150m2 – R160m2 (March 2011)

  48. Slide 48: The Menlyn Precinct Development Framework

    THE MENLYN PRECINCT DEVELOPMENT FRAMEWORK The Menlyn Precinct Development Framework (MPDF) The MPDF aims to provide 350,000 m² of new developable floor area Mixed use configuration – residential, offices and retail SANRAL started with their component

  49. Slide 49: SITE

    ATTERBURY OFF RAMP – UPGRADES IN PROGRESS SITE FAERIE MENLYN GLEN SHOPPING (EMIRA) GARSFONTEIN CENTRE OFF RAMP – UPGRADES IN PROGRESS MENLYN SQUARE (EMIRA) THE GLEN HIGH SCHOOL

  50. Slide 50: The Scheme Information

    THE SCHEME INFORMATION Use: Offices Size: 13,110 m² Parking: 658 bays provided Parking ratio: 5 Bays/100m² (4 Bays/100m² required by Council) Storeys: Ground plus four storeys and 2 Parking basements Access: Ingersol Street Visibility: Atterbury Road Green Building: Landlord can incorporate tenant s

  51. Slide 51: The Proposed Scheme (Block Diagram)

    THE PROPOSED SCHEME (BLOCK DIAGRAM)

  52. Slide 52: The Proposed Scheme (Plan)

    THE PROPOSED SCHEME (PLAN) Le eee TCTAL GLA TTA Poot KUKS eos TOTAL PGRKING tq 654 BAYS: MNES NSS ISH UNS IM RENE (DLSL PARKING pow cht IAs OFT AR As fee han wees) * amare GCVIHT 2 Picea Podiummua

  53. Slide 53: Estimated Programme

    ESTIMATED PROGRAMME Approval of rights February 2009 Existing tenants vacated 30 August 2009 Start of construction 1 September 2009 Practical completion 1 March 2011

  54. Slide 54: Property: Blocks A & B, Hurlingham Office Park

    PROPERTY: BLOCKS A & B, HURLINGHAM OFFICE PARK 2 of the 7 office blocks in the Hurlingham Office Park Located on the corner of William Nicol and Republic Road C-grade quality in a recently refurbished B+ grade park Current size (blocks A and B): 4,300m² Current parking ratio (blocks A and B): 2 bays

  55. Slide 55: Project: Blocks A & B, Hurlingham Office Park

    PROJECT: BLOCKS A & B, HURLINGHAM OFFICE PARK Partial demolition of both blocks Basement extension to create 5 bays / 100m² Joining of both office blocks Adding of an extra floor Move to an A-grade, sub-divisible office building

  56. Slide 56: Current Buildings: Blocks A & B

    CURRENT BUILDINGS: BLOCKS A & B

  57. Slide 57: After Redevelopment: Blocks A & B

    AFTER REDEVELOPMENT: BLOCKS A & B

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  59. Slide 59: Financials: Blocks A & B, Hurlingham Office Park

    FINANCIALS: BLOCKS A & B, HURLINGHAM OFFICE PARK Project completion date: estimated March 2010 Additional GLA created: 3,400m² Indicative net rental to achieve: R120m² March 2010 Indicative capital spend: R90m (R11,688m²) Incremental yield: 10.8%

  60. Slide 60: Property: 2 Sturdee and 12 Baker, Rosebank

    PROPERTY: 2 STURDEE AND 12 BAKER, ROSEBANK 2 Office buildings located on the corners of Bolton, Baker and Sturdee Roads in Rosebank Current GLA: 10,239m² Current value: R95.6m Single tenanted: Sasol Group to August 2012 Close to proposed new Gautrain Station on Oxford Road

  61. Slide 61: Property: 2 Sturdee and 12 Baker, Rosebank

    PROPERTY: 2 STURDEE AND 12 BAKER, ROSEBANK

  62. Slide 62: Project: 2 Sturdee and 12 Baker, Rosebank

    PROJECT: 2 STURDEE AND 12 BAKER, ROSEBANK Emira represents 66% of a consortium (incl MPI and private owner) to redevelop the entire block - corner Bolton, Baker, Sturdee and Bath roads Application submitted to increase Emira’s bulk by 21,700m² and total site to approximately 50,000m2 6 Basement leve

  63. Slide 63: Current Buildings: 2 Sturdee and 12 Baker

    CURRENT BUILDINGS: 2 STURDEE AND 12 BAKER

  64. Slide 64: After Redevelopment: 2 Sturdee and 12 Baker

    AFTER REDEVELOPMENT: 2 STURDEE AND 12 BAKER

  65. Slide 65: Layout: 2 Sturdee and 12 Baker, Rosebank

    LAYOUT: 2 STURDEE AND 12 BAKER, ROSEBANK

  66. Slide 66: Financials: 2 Sturdee and 12 Baker, Rosebank

    FINANCIALS: 2 STURDEE AND 12 BAKER, ROSEBANK Initial costing: R1,2bn (excl land) of which Emira will carry R792m (66%) Possible rentals (in current terms) will range from R110m² to R170m² dependent on tenant requirements and the Green Star rating Timing: 4 year project

  67. Slide 67: Property: FNB Heerengracht, Cape Town

    PROPERTY: FNB HEERENGRACHT, CAPE TOWN Located in Cape Town CBD Foreshore Value at 30 June 2008: R19.18m (R2,844m²) Size: 6,745m2 Number of tenants: 6 Average net rentals: R33.81m² Grade C Office Building No Parking in building Main Tenant: FNB Branch (1,492m2)

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  69. Slide 69: Pier Place

    Convention Tower 15,000m² Offices Roggebaai Square Underground Parking Garage Media City 40,000m² Offices Edge Development 16,000m² Office Tower Pier Place Rejuvenation

  70. Slide 70: Options for Property

    OPTIONS FOR PROPERTY Refurbish Demolish & Redevelop Pros Cheaper than rebuild Redesign to meet modern requirements Producing income sooner Higher rentals achievable Good parking ratio Cons Difficult Column Grid Much more costly Difficult Parking & Low Ratio Complete Jan 2010 Complete July 2010 Net R

  71. Slide 71: Visibility

    VISIBILITY Highway Civic Centre Adderley Street

  72. Slide 72: Proposed Building

    PROPOSED BUILDING

  73. Slide 73: Proposed Building

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  74. Slide 74: Office Floor

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  76. Slide 76: Green Design

    GREEN DESIGN Maximise Natural Light Central light well provides natural light Glazed External Façade Natural Ventilation Opening sections on external facades for natural ventilation Cross-ventilation through central light well with heat extraction at roof level Upper parking levels are naturally ven

  77. Slide 77: Update on Salient Properties & Trading

    UPDATE ON SALIENT PROPERTIES & TRADING

  78. Slide 78: Property: WorldWear Centre

    PROPERTY: WORLDWEAR CENTRE Located on Beyers Naude in Fairlands, near Cresta and just off the N1 Value at 30 June 2008: R159.0m Size: 13,629m² Number of tenants: 71 Average net rentals: R104m² Estimated foot count: 1.2m p.a. +61% growth over 3 months to Sept 08 Major tenants: Mr Price Home (2,499m²)

  79. Slide 79: Photograph: WorldWear Centre

    PHOTOGRAPH: WORLDWEAR CENTRE

  80. Slide 80: Location: WorldWear Centre

    LOCATION: WORLDWEAR CENTRE

  81. Slide 81: Property Weaknesses: WorldWear Centre

    PROPERTY WEAKNESSES: WORLDWEAR CENTRE Lack of feet through the centre Limited convenience related stores Open air shopping centre Outlet centres new in SA

  82. Slide 82: Strategic Plans: Implemented and Ongoing

    STRATEGIC PLANS: IMPLEMENTED AND ONGOING Drawing feet from the Wesbank development Fully occupied July 2008 70,000m² development 4,500 people Marketing campaigns and promotions being done to draw feet Pick n’ Pay Daily – opened 29th September 2008 Move towards convenience shopping Investigations tak

  83. Slide 83: Leasehold: WorldWear Centre

    LEASEHOLD: WORLDWEAR CENTRE Land currently leased for 30 years with City of Johannesburg An upfront payment for this Leasehold was made in purchase price Option to renew for 20 years but as a Headlease (i.e. leasing both land and buildings, rather than just the land) Recently revised terms agreed: o

  84. Slide 84: Property: Wonderpark Shopping Centre

    PROPERTY: WONDERPARK SHOPPING CENTRE Located in middle-LSM market of Akasia, north-west of Pretoria between the Pretoria CBD and Rosslyn/Soshanguve Value at 30 June 2008: R569.0m (R8,900m²) Size: 63,935m2 Number of tenants: 146 Average net rentals: R63.17m² Footcount: 9.2m p.a. +34% y-o-y Major tena

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  86. Slide 86: Background: Wonderpark Shopping Centre

    BACKGROUND: WONDERPARK SHOPPING CENTRE 1985 GLA 28,000m2 2000/2001 Revamped Virgin Active GLA 32,000m2 2005 to 2007 Mr Price Group, Truworths, Foschini, Standard Bank, Game and Ster Kinekor GLA 62,400m2 2007/2008 Upgrade Caltex Builders Express GLA 63,900m2

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  88. Slide 88: Recent Projects Summary

    RECENT PROJECTS SUMMARY Caltex upgrade on the back of a new ten year lease with Chevron Internal changes to centre to meet the additional space requirements for Truworths and Foschini Group were approved GLA increased over 800m² Income secured by means of long leases with national retailers Improved

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  91. Slide 91: Financials: Wonderpark Shopping Centre

    FINANCIALS: WONDERPARK SHOPPING CENTRE CALTEX UPGRADE CAPEX Motivated R6.83m Actual R6.11m Income Motivated R795,037 Actual R885,037 Return Motivated 11.7% Actual 14.5% INTERNAL CHANGES CAPEX Motivated R9.95m Actual R9.70m Income Motivated R1.35m Actual R1.35m Return Motivated 13.6% Actual 13.9%

  92. Slide 92: Prospects: Wonderpark Shopping Centre

    PROSPECTS: WONDERPARK SHOPPING CENTRE Residential market growth -± 15,000 units planned Foot count growth +34% YTD Projected foot count for 2008 at ± 9.5m – up +28% Trading growth as per audited results for ‘08 – up +17% Planning to further extend the centre to just under GLA 100,000m2 Extension anc

  93. Slide 93: Financial Assumptions as at September '08

    FINANCIAL ASSUMPTIONS AS AT SEPTEMBER ‘08 Gross income: good growth in industrial and office sectors as a result of increasing market rentals and letting assumptions + rising municipal charges Recoverable expenses: to grow at higher than historical rates due to increased municipal charges Non-recove

  94. Slide 94: The End

    The End

Emira Property Fund — Corporate Update (December 2008) on 6ix